Archive: Apr 2020

April 24, 2020

On April 21, 2020, the SEC proposed Rule 2a-5 under the 1940 Act (Rule) that specifies what is required for a fund (or a business development company) to determine the fair value in good faith of the fund’s investments that do not have readily available market quotations for purposes of Section 2(a)(41) of the 1940 Act and Rule 2a-4 under the 1940 Act.

April 16, 2020

On April 14, 2020, the SEC’s Division of Investment Management (Division) issued a statement to underscore the importance of delivering required information to investment company investors on a timely basis (Statement). The Statement emphasizes that investment companies are subject to Section 10(a)(3) of the 1933 Act, which requires any prospectus used…

April 16, 2020

The SEC’s Division of Investment Management (Division) recently issued an Information Update (Update) regarding changes to the SEC’s procedures for granting exemptive applications filed under the 1940 Act or the Advisers Act. Before issuing an exemptive order, the SEC provides a public notice summarizing the exemptive relief that will be…

April 9, 2020

On April 8, 2020, the SEC issued a temporary exemptive order that provides specific, technical relief to BDCs with respect to certain senior securities and joint transaction restrictions and prohibitions under the 1940 Act (Order). The Order permits BDCs to issue senior securities subject to a modified asset coverage calculation…

April 2, 2020

Today, two semi-transparent ETFs following the Precidian ActiveShares model were listed for trading on a U.S. exchange. American Century Focused Large Cap Value ETF (FLV) and American Century Focused Dynamic Growth ETF (FDG), which are both listed on the Cboe BZX Exchange, Inc. (Cboe), are the first ETFs…

April 1, 2020

On March 26, 2020, the SEC staff (Staff) issued a no-action letter to the Investment Company Institute (ICI Letter) that provides temporary relief to registered open-end investment companies, other than exchange-traded funds and money market funds (open-end funds), and affiliated persons of such open-end funds (and affiliated persons of such affiliated persons) (Affiliates) from certain restrictions in Section 17(a) of the 1940 Act. Subject to conditions that are specified in the ICI Letter, the Staff will permit Affiliates to rely on Rule 17a-9 to purchase an affiliated open-end fund’s debt securities to enhance such fund’s liquidity or to fund shareholder redemptions in light of the short-term dislocation in the fixed income markets caused by the outbreak of COVID-19.